- Five-year credit default swaps on Kinder Morgan (NYSE:KMI) have widened out 28% over the past week and nearly 400% YTD, Fitch Ratings says, adding that KMI’s CDS are now at their widest level in seven years.
- After pricing consistently at BBB/BBB- levels for much of the past year, Fitch says credit protection on KMI’s debt is now pricing in B+ territory.
- Moody's downgraded its outlook on KMI’s debt to negative earlier this week, and the Argus research firm today cut its view of the stock to Hold from Buy.
- However, not everyone is negative on the company: Raymond James analyst Darren Horowitz says that "while the Moody’s downgrade isn’t encouraging, it does not materially affect our outlook on the partnership’s ability to grow distributions or fund its capital budget."
- Doug Christopher of Crowell Weeden factors in the possibility of a $1.50 dividend cut into his KMI price target and still comes up with a $31 price target and Buy rating.
- KMI closed today -6.7% at $19.26 after hitting a 52-week low of $19.14.